It’s getting more expensive for hospitals to care for patients. That’s according to a new report by the Connecticut Hospital Association.
The report states operating costs increased by $1 billion from 2022 to 2023. Jennifer Jackson, CEO of Connecticut Hospital Association, said the government can do more.
“It's absolutely imperative that Medicaid begin to pay rates that cover the cost of care,” Jackson said.
Jackson said government underfunding of medicaid payments force hospitals to shift costs of care to insurance companies that are often reluctant to shoulder them.
Health officials say hospitals often face increased financial strain from costs related to labor and medicine. And as a result, patients may be forced to pay higher costs.
Dan DeBara, CFO of Nuvance Health, said hospitals try to get insurance companies to pay more but many times they end up facing opposition.
“In essence, payers do nearly anything they can within reason to not pay us, whether it's prior authorization requirements, which inhibit timely care, whether it's putting us through administrative hoops to get our patients out of the hospital,” DeBara said.
The report stated much of the costs come from a growing share of patients with medicaid insurance. The state has a higher portion of patients with medicaid compared to other states, so low reimbursement rates from the government add to the financial burden.
Labor shortages have also driven up wages, because workers are now at a premium. Many nurses opt to take on a travel nurse position where they can successfully negotiate their salary as opposed to being employed by a hospital.
The report also shows hospitals across the Connecticut lost $76 million in 2023 due to the costs of labor, medications and medical supplies. Faced with a lack of fully reimbursed costs, hospitals, according to DeBara, have to make do by eliminating costs.
“We do that by cutting, in some days, cutting administrative staff, by reworking, by retooling, doing whatever is necessary to again, either remain profitable or prevent ourselves from additional losses,” DeBarasaid.
That could also mean additional burdens for patients, according to Jackson.
“The economic headwinds that we're facing are yet another challenge to our ability to provide that very significant resource for patients and their families,” Jackson said.
Jackson mentioned many hospitals have sliding scale payment programs. They allow patients who cannot afford to pay their bill to pay what they can.
